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Bond Portfolios and Two-Fund Separation in the Lucas Asset-Pricing Model, CMS-EMS Discussion Paper No. 1427

Abstract

This paper examines investors' portfolios in a dynamic (Lucas-style) general equilibrium model with heterogeneous agents. The celebrated two-fund separation theorem from static portfolio analysis generalizes, under the classical preference assumptions,

Type

Working Paper

Author(s)

Kenneth L. Judd, Felix Kubler, Karl Schmedders

Date Published

2007

Citations

Judd, Kenneth L., Felix Kubler, and Karl Schmedders. 2007. Bond Portfolios and Two-Fund Separation in the Lucas Asset-Pricing Model. CMS-EMS Discussion Paper No. 1427.

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